I.51. The use of trading robots and artificial intelligence by exchanges to control the movement of the market.

The increase in the number of clients complicates the task of manual control of all transactions. Exchanges inevitably use trading robots (special programs) based on neural networks to control price movement.

Is it good or bad for you and me? Machine logic is quite primitive, which allows you to detect patterns in the price movement and use it for earnings. So on the BINANCE exchange, almost all altcoins are controlled by artificial intelligence. The price movement still has easily recognizable patterns that allow you to use robots to earn money. The exchange uses robots to generate a constant price movement up and down in narrow price ranges, forming market noise. In fact, thanks to this noise, the exchange catches simpletons trying to enter the moments when the market seems to have calmed down. In addition to the exchange itself, robots can be used by anyone, which creates constant market noise and constant price movement. In order for the robots to make losses, the exchange periodically forms periods of downtime and gives false breakouts with the price returning to the opening point by the end of the day. In general, robots cannot interfere with the market movement in the trend, so they do not pose any obstacle for us. We can use the detected robots for scalping transactions in small timeframes (minute and five-minute). In this book, we will get acquainted in more detail with the topic of developing our own trading robots and develop one version of a trading robot for TRANSAQ software.


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